Online Events Business Booming
The deal will be financed through both cash and stock. Hopin secured $40 million for the business in a Series A funding round back in June and an additional $125 million in a Series B round in November. The company is currently valued at around $2.1 billion.
During the Series B funding round, Hopin said its business’s ARR climbed from zero to $20 million within nine months. StreamYard, on the other hand, had itself scaled to $30 million ARR with no external funds. StreamYard is easy to use, and it allows its users to Interview guests, share screens, and much more.
Hopin’s chief executive Johnny Boufarhat said the combined ARR of the two companies would stand at around $65 million. The company has taken a massive advantage from the coronavirus pandemic as global events were obligatorily held online. As a result, Hopin, a Series B company, is currently near IPO levels.
After the deal is closed, StreamYard will retain its current customer base as the agreement allows it to preserve its business brand and product. Still, Hopin plans to integrate StreamYard’s streaming solutions into its product and StreamYard will become its default streaming option.
Geige Vandentop, co-founder of StreamYard, said 15% to 20% of the company’s customer base use its solutions to host events, while the majority stems from the creator economy and small businesses and entrepreneurs.
“Even the Hopin team found themselves using StreamYard and recommending that organizers use StreamYard as well to make their events even more professional and engaging,” Hopin said in a statement.
Hopin is currently working on a customer-first, multi-product lineup, in which StreamYard will play a key role. Vandentop said the acquisition is the best solution for its business and current customers, adding the deal is expected to facilitate StreamYard’s business growth.
Hopin doubled its size through a relatively inexpensive acquisition, especially if we compare StreamYard’s revenue scale with the one of Hopin’s. But StreamYard traded the part of its equity for some of Hopin’s shares that have the potential to grow very quickly. Vandentop stated that Hopin was growing at a bigger pace than StreamYard.
Hopin, a virtual events platform, has bought StreamYard startup for $250 million. The deal will allow StreamYard to retain its brand and services, which means it will continue to serve its existing customer base.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.